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Key Takeaways Wabtec's Q3 earnings rose 22% to $2.83 per share, beating estimates, while revenues grew 8.1% to $3.12B. Freight and Transit adjusted margins expanded 190 basis points and 260 basis points, respectively, in Q3. WAB's total backlog surged 22.9% to $31.44B, while operating cash flow rose to $455M from $367M. Wabtec Corporation (WAB - Free Report) reported mixed third-quarter 2026 results, wherein earnings surpassed the Zacks Consensus Estimate but revenues missed the same. Both metrics increased year over year, supported by growth across Freight and Transit businesses and improved profitability.

Quarterly earnings (excluding 41 cents from non-recurring items) of $2.83 per share beat the Zacks Consensus Estimate of $2.72 by 4.04% and increased 22% year over year. Revenues climbed 8.1% year over year to $3.12 billion but missed the consensus mark of $3.18 billion by 2%. The 12-month backlog increased 8.8% to $8.99 billion.

Wabtec's Freight Business Delivers Solid GrowthFreight segment revenues increased 6.9% year over year to $2.24 billion. Services revenues rose 6.7% to $794 million, driven by stronger core demand and increased modernization deliveries. Equipment sales edged up 0.3% to $679 million as higher mining sales were largely offset by lower locomotive deliveries.

Digital Intelligence revenues surged 24.2% to $369 million, aided by the Frauscher Sensor Technologies acquisition and robust core digital demand. Components revenues increased 5.3% to $395 million, supported by industrial, maintenance-of-way and international demand. Freight adjusted operating margin expanded 190 basis points to 26.4%, reflecting improved gross margins and operating efficiency.

WAB's Transit Segment Posts Strong Margin GainsTransit segment revenues advanced 11.3% year over year to $883 million. Growth reflected the Dellner Couplers acquisition and higher original equipment and aftermarket sales, partially offset by unfavorable currency movements. On a constant-currency basis, revenues increased 12.5%.

Original equipment revenues rose to $408 million from $367 million, while aftermarket revenues increased to $475 million from $426 million. Transit adjusted operating margin expanded 260 basis points to 18.1%, primarily benefiting from improved gross profitability despite higher operating expenses relative to sales.

Wabtec Benefits From Organic and Acquisition GainsAcquisitions contributed $114 million to third-quarter revenue growth, comprising $49 million from Freight and $65 million from Transit. Organic growth added $137 million, including $102 million from Freight and $35 million from Transit.

Portfolio optimization activities reduced revenues by $12 million, while unfavorable foreign exchange movements lowered sales by $5 million. Organic growth exceeded acquisition contributions, highlighting the role of underlying customer demand alongside strategic investments in expanding Wabtec's business.

WAB Expands Consolidated Operating ProfitabilityAdjusted gross margin improved 180 basis points year over year to 37.4%, while adjusted operating margin expanded 190 basis points to 22.9%. Adjusted operating income increased to $715 million from $607 million, supported by higher sales, favorable product mix and productivity improvements.

GAAP operating income climbed to $625 million from $491 million, with operating margin expanding 300 basis points to 20%. Benefits from cost recovery, manufacturing efficiencies and Integration 3.0 savings helped offset higher raw material costs, tariffs and acquisition-related expenses. Selling, general and administrative expenses increased to $383 million from $375 million.

Wabtec's Backlog Strengthens Revenue VisibilityTotal backlog reached $31.44 billion as of Sept. 30, 2026, up 22.9% from $25.58 billion a year earlier. Freight backlog increased to $25.77 billion, while Transit backlog reached $5.67 billion, reflecting continued order momentum across both businesses.

The 12-month backlog grew $725 million year over year. Freight accounted for $6.54 billion of near-term orders, while Transit represented $2.45 billion. Recent orders included $1 billion in international locomotive and service contracts and $633 million in North American locomotive and modernization orders.

WAB Generates Higher Operating Cash FlowCash from operations increased to $455 million from $367 million in the prior-year quarter, primarily driven by higher net income. Operating cash flow conversion stood at 82% compared with 83% a year earlier.

Wabtec ended the quarter with $489 million in cash, cash equivalents and restricted cash. Total available liquidity was $2.09 billion, including $1.61 billion available under existing credit facilities. Total debt stood at $6.38 billion. During the quarter, Wabtec repurchased $305 million of shares and paid $52 million in dividends.

WAB Raises 2026 Earnings OutlookWabtec raised and tightened its full-year 2026 adjusted earnings guidance to $10.85-$11.05 per share from the previous $10.60-$10.90 range. The midpoint increased 20 cents and represents expected year-over-year growth of approximately 22%. The Zacks Consensus Estimate for 2026 earnings is currently pegged at $10.89 per share, below the midpoint of the guided range.

The company maintained its 2026 revenue guidance at $12.30-$12.60 billion, implying growth of approximately 11.5% at the midpoint. The outlook assumes continued operating margin expansion, productivity improvements and benefits from Integration 3.0 and portfolio optimization initiatives. The Zacks Consensus Estimate for 2026 revenues is currently pegged at $12.53 billion.

Currently, Wabtec carries a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

Q3 Performance of Another Transportation CompanyDelta Air Lines (DAL - Free Report) reported third-quarter 2026 earnings (excluding 57 cents from non-recurring items) of $1.72 per share, missing the Zacks Consensus Estimate of $1.80 by 4.44%. Earnings increased year over year despite sharply higher fuel costs and rising non-fuel expenses.

Adjusted revenues climbed 16% year over year to $17.59 billion but missed the consensus estimate of $17.74 billion by 0.9%. Broad demand strength and healthy yields lifted adjusted total revenue per available seat mile, or TRASM, 15%, while premium and diversified revenue streams continued to expand.

Upcoming Earnings Release of a Transportation CompanyUnion Pacific (UNP - Free Report) is scheduled to report third-quarter 2026 earnings on Oct. 22. The Zacks Consensus Estimate for third-quarter 2026 earnings has been revised 2.1% upward over the past 60 days.

UNP’s earnings beat the Zacks Consensus Estimate in three of the preceding four quarters (missing the mark on the other occasion). The average beat is 2.8%. Improvement in the freight scenario is expected to aid results.

The headline numbers for Wabtec (WAB) give insight into how the company performed in the quarter ended September 2026, but it may be worthwhile to compare some of its key metrics to Wall Street estimates and the year-ago actuals.

Key Takeaways Wabtec is set to report Q3 earnings on Oct. 21, with EPS expected to rise 17.24% and sales to grow 10.32%.Strong aftermarket & OEM demand may lift WAB's Freight and Transit revenues by 8.1% and 12.8%, respectively.Higher operating costs and supply-chain disruptions may pressure WAB's profits despite four straight beats. Westinghouse Air Brake Technologies (WAB - Free Report) , operating as Wabtec Corporation, is scheduled to report third-quarter 2026 results on Oct. 21, before market open.

The Zacks Consensus Estimate for WAB’s third-quarter 2026 earnings has remained flat at $2.72 per share over the past 60 days. The consensus mark for earnings implies a 17.24% upside from the year-ago actual. The consensus estimate for sales (currently pegged at $3.18 billion) suggests a 10.32% uptick from the year-ago actual.

Image Source: Zacks Investment Research

Wabtec has an encouraging earnings surprise history. The company’s earnings have outpaced the Zacks Consensus Estimate in each of the trailing four quarters, delivering an average beat of 4.18%.

Image Source: Zacks Investment Research

Let’s see how things have shaped up for Wabtec this earnings season.

Factors Likely to Have Influenced WAB's Q3 PerformanceWe expect Wabtec's performance in the to-be-reported quarter to have been adversely affected by higher operating expenses. Persistent geopolitical tensions in the Middle East and ongoing supply-chain disruptions are likely to pressure the company's bottom line.

Conversely, WAB's top-line performance in the to-be-reported quarter is expected to have benefited from stronger demand for services and components, supported by solid sales across both the aftermarket and original equipment manufacturing (OEM) channels.

The Zacks Consensus Estimate for Freight revenues is pegged at $2.26 billion, implying 8.1% growth from the prior-year reported figure. The consensus mark for Transit revenues is pinned at $895 million, indicating 12.8% growth from the prior-year reported figure.

What Our Model Says About WABOur proven model does not conclusively predict an earnings beat for Wabtec this time. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the odds of an earnings beat, which is not the case here. You can uncover the best stocks to buy or sell before they are reported with our Earnings ESP Filter.

Wabtec has an Earnings ESP of 0.00% and a Zacks Rank #2 at present. You can see the complete list of today’s Zacks #1 Rank stocks here.

Highlights of Wabtec’s Q2 EarningsWabtec reported second-quarter 2026 adjusted earnings of $2.76 per share, which beat the Zacks Consensus Estimate of $2.63 by 4.9% and increased 21.6% year over year, owing to higher sales and operating margin expansion. Revenues climbed 17.5% to $3.18 billion and surpassed the consensus mark of $3.08 billion by 3.2%. Growth across Freight and Transit, supported by acquisitions and organic expansion, drove the top line. The 12-month backlog increased 11.3% to $9.14 billion.

Stocks to ConsiderHere are a few stocks from the broader Zacks Transportation sector that investors may consider, as our model shows that they have the right combination of elements to beat on earnings this reporting cycle.

Old Dominion Freight Line (ODFL - Free Report) has an Earnings ESP of +0.12% and a Zacks Rank #2 at present. You can see the complete list of today’s Zacks #1 Rank stocks here.

ODFL is scheduled to report third-quarter 2026 earnings on Oct. 28. The Zacks Consensus Estimate for third-quarter 2026 earnings has been revised upward by 0.63% over the past 60 days. ODFL’s earnings beat the Zacks Consensus Estimate in each of the preceding four quarters, with the average beat being 6.71%.

C.H. Robinson Worldwide (CHRW - Free Report) has an Earnings ESP of +0.46% and a Zacks Rank #2 at present. CHRW is scheduled to report third-quarter 2026 earnings on Oct. 28.

The Zacks Consensus Estimate for third-quarter 2026 earnings has been revised upward by 1.82% to $1.68 per share over the past 60 days. CHRW’s earnings beat the Zacks Consensus Estimate in three of the preceding four quarters and met the mark on the other occasion. The average beat is 8.11%.

PITTSBURGH--(BUSINESS WIRE)-- #WeAreWabtec--Wabtec Corporation (NYSE: WAB) announced today that its Board of Directors declared a regular quarterly common dividend of 31 cents per share, payable on December 1, 2026, to holders of record on November 17, 2026.About Wabtec Wabtec Corporation is revolutionizing the way the world moves for future generations. The Company is a leading global provider of equipment, systems, digital solutions and value-added services for the freight and transit rail industries, as wel.

Key Takeaways Wabtec's $700M-plus Guinea rail services deal lifts its Simandou-related business beyond $1.2 billion.WAB's second-quarter revenues rose 17.5%, while its multi-year backlog surged 41.7% to $30.93 billion.WAB's 41.6% annual stock gain and 23.4X forward P/E highlight strong momentum but also valuation risks. Westinghouse Air Brake Technologies Corporation, operating as Wabtec Corporation (WAB - Free Report) , is strengthening its position in the global rail industry, supported by expanding service capabilities and rising opportunities in international markets. Its recent agreement worth more than $700 million with La Compagnie du TransGuinéen (CTG) underscores the company's growing presence in Africa and strengthens its long-term revenue prospects.

The agreement, Wabtec's largest services contract in Africa, covers maintenance, parts management, logistics, workforce training and remote diagnostics for locomotives operating along Guinea's 600-kilometer TransGuinean Railway. Combined with earlier locomotive orders, the deal takes Wabtec's Simandou-related business beyond $1.2 billion.

With the company securing long-duration service contracts and benefiting from rail infrastructure investments, investors may wonder whether WAB's growth prospects justify buying the stock despite its substantial share-price appreciation and premium valuation.

WAB's Strong Price Performance Reflects Investor ConfidenceWAB's shares have gained 41.6% over the past year, significantly outperforming the Zacks Transportation - Equipment and Leasing industry's 9% rise and the S&P 500's 17.8% increase. The substantial outperformance reflects investors' confidence in the company's growth potential and its ability to capitalize on sustained demand for rail equipment and services.

Image Source: Zacks Investment Research

WAB's Services Expansion Strengthens Growth ProspectsWabtec's expanding services portfolio is a key growth driver, supported by rising demand for locomotive modernization, maintenance and advanced rail technologies. The CTG agreement strengthens its long-term lifecycle services business, improving revenue visibility and customer relationships.

In the second quarter of 2026, revenues increased 17.5% year over year to $3.18 billion, while adjusted earnings per share (EPS) rose 21.6% to $2.76. Adjusted operating margin expanded 80 basis points to 21.9%. Wabtec's multi-year backlog rose 41.7% to $30.93 billion, while its 12-month backlog grew 11.3% to $9.14 billion, providing solid revenue visibility and supporting future growth.

Caterpillar (CAT - Free Report) , through its Progress Rail business, competes with Wabtec in locomotive manufacturing, maintenance and related services. Caterpillar's emphasis on lifecycle services and predictive maintenance underscores the growing importance of technology-enabled aftermarket solutions. While competition from Caterpillar remains significant, Wabtec's integrated offerings and long-term contracts strengthen its ability to capitalize on rising rail infrastructure investments.

Similarly, Greenbrier Companies (GBX - Free Report) provides railcar manufacturing, fleet management and maintenance services, highlighting the industry's focus on extending equipment life and improving operational efficiency. Greenbrier's diversified rail solutions reflect the opportunities arising from sustained infrastructure investments. Wabtec's expanding international presence and growing services portfolio position it to benefit from similar industry trends alongside Greenbrier Companies.

Wabtec's financial flexibility also supports investments and shareholder returns. During the second quarter, operating cash flow reached $441 million compared with $209 million a year earlier. The company repurchased $215 million in shares and distributed $53 million in dividends. Management raised its 2026 revenue guidance to $12.30–$12.60 billion and adjusted EPS outlook to $10.60-10.90, reflecting confidence in its operational momentum.

However, challenges persist. The complexity of servicing locomotives across demanding operating environments, potential project execution delays and competitive pressures could affect profitability. Moreover, integrating acquisitions and maintaining service standards across international markets will require disciplined execution. These factors warrant monitoring despite Wabtec's encouraging fundamentals.

WAB's Premium Valuation Warrants AttentionWAB currently trades at 23.4 times forward 12-month earnings, above the industry average of 14.59 times. This substantial premium suggests investors have already priced in considerable growth expectations.

Image Source: Zacks Investment Research

Although Wabtec's strong backlog, earnings momentum and growing services portfolio support a higher valuation, limited room for execution setbacks could heighten downside risks. Sustained earnings growth will be essential to justify the stock's premium.

Positive Earnings Estimate Revisions Reinforce WAB's OutlookThe Zacks Consensus Estimate for 2026 earnings is pegged at $10.89 per share, up 0.09% over the past 60 days. The 2027 consensus estimate has increased 0.32% to $12.43 per share during the same period.

Image Source: Zacks Investment Research

The upward revisions, although modest, signal improving earnings expectations, complementing Wabtec's strengthening order pipeline and favorable operating outlook.

Should Investors Buy WAB Stock Now?Wabtec's expanding rail services business, highlighted by its landmark CTG agreement, enhances long-term revenue visibility and strengthens its international presence. Robust backlog growth, margin expansion, healthy cash generation and positive earnings estimates further reinforce its investment appeal.

Although the stock's premium valuation and operational challenges warrant caution, its favorable growth prospects and Zacks Rank #2 (Buy) support a positive investment stance. Investors seeking exposure to long-term rail infrastructure investment and recurring aftermarket revenues may consider buying WAB stock, while remaining mindful of valuation-related volatility. You can see the complete list of today’s Zacks #1 (Strong Buy) Rank stocks here.

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Key Takeaways Wabtec signs its largest African services deal, worth more than $700M, for CTG's locomotive fleet. The contract covers maintenance, parts, logistics, training and remote diagnostics over multiple years. Simandou could support sustained demand as WAB expands its rail network & local capabilities in Guinea Wabtec (WAB - Free Report) is strengthening its presence in Africa’s rail infrastructure market through a more than $700 million long-term services agreement with La Compagnie du TransGuineen ("CTG"). The contract, Wabtec’s largest services agreement in Africa, covers maintenance and support for CTG’s fleet of Evolution Series locomotives operating on the 600-kilometer TransGuinean Railway. Combined with Wabtec’s 2024 locomotive orders, the agreement takes the company’s total business tied to the Simandou project to more than $1.2 billion.

The multi-year agreement is expected to provide Wabtec with a significant source of recurring service revenues while strengthening its relationship with CTG. The scope includes scheduled and unscheduled maintenance, parts and component overhauls, parts management, logistics support, workforce training and advanced remote diagnostics. These comprehensive lifecycle services can support locomotive availability and reliability while creating opportunities for Wabtec to generate additional revenues beyond the initial equipment sale.

The Simandou project also provides WAB with an opportunity to expand its footprint in Guinea, as the TransGuinean Railway is expected to serve one of the world's largest untapped high-grade iron ore reserves. The railway will transport iron ore from the Simandou mine to the Port of Morebaya while supporting passenger and non-mining freight traffic. The scale of the infrastructure project could create sustained demand for locomotive maintenance, components and technology solutions, supporting Wabtec’s longer-term growth prospects in the region.

However, supporting rail operations in eastern Guinea presents challenging operating conditions, including extreme temperatures and demanding environments. Wabtec’s ES43AC locomotives are designed for such conditions, but maintaining fleet reliability across a 600-kilometer railway could require substantial ongoing resources and execution. The agreement’s localization component, including workforce development and partnerships with Guinean businesses, could also add operational complexity as WAB works to build local capabilities while maintaining service standards.

Wabtec’s Share Price PerformanceWAB’s shares have gained 48.9% over the past year compared with the Transportation - Equipment and Leasing industry’s 10.4% growth.

Image Source: Zacks Investment Research

WAB’s Zacks RankWAB currently carries a Zacks Rank #3 (Hold).

Stocks to ConsiderInvestors interested in the Zacks Transportation sector may consider Expeditors International of Washington, Inc. (EXPD - Free Report) and Seanergy Maritime Holdings (SHIP - Free Report) . 

EXPD currently sports a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.

Expeditors has an expected earnings growth rate of 28.6% for 2026. The company has an encouraging earnings surprise history. Its earnings outpaced the Zacks Consensus Estimate in each of the trailing four quarters, delivering an average beat of 17.15%.

Seanergy Maritime Holdings currently carries a Zacks Rank #2 (Buy).

SHIP has an expected earnings growth rate of more than 100% for the current year. The company has an encouraging earnings surprise history. Its earnings topped the Zacks Consensus Estimate in each of the trailing four quarters, delivering an average beat of 38%.

The Zacks  Transportation - Equipment and Leasing industry is currently navigating a challenging macroeconomic environment. The industry grapples with challenges due to persistent inflation, tariff-related tensions and lingering supply-chain disruptions. Geopolitical woes represent further challenges.

Despite the challenging macroeconomic conditions, industry players such as Wabtec Corporation (WAB - Free Report) , AerCap Holdings N.V. (AER - Free Report)  and Ryder System, Inc. (R - Free Report) ) stand out for their solid investor-friendly steps. Notably, consistent shareholder-friendly initiatives in the form of dividend payouts or share buybacks imply solid financial strength of companies in the Equipment and Leasing industry. Such moves boost investors’ confidence and benefit the bottom line.

Industry Overview The Zacks Transportation - Equipment and Leasing industry includes companies offering equipment financing as well as leasing and supply-chain management services. The industry includes aircraft, railcar and intermodal container lessors. Some of these companies even provide logistics and transportation solutions, such as vehicles, drivers, management and administrative services. Most industry participants offer fleet management solutions and serve customers, varying from small businesses to large international enterprises. Customers range from a wide variety of industries, the most significant being automotive, electronics, transportation, grocery, lumber and wood products, food service and home furnishing. A few of these companies provide locomotives and technology-based equipment, systems and services to freight rail and passenger transit industries.

Factors Deciding the Industry's Outlook Strong Financial Returns for Shareholders: With economic activities gaining pace from the pandemic lows, more and more companies are allocating their increasing cash pile through dividends and buybacks to pacify long-suffering shareholders. This underlines their financial strength and confidence in the business. Among the Transportation – Equipment and Leasing industry players, on July 9, 2026, Ryder’sboard of directors approved a dividend hike of 10.9%, thereby raising its quarterly cash dividend to $1.01 per share ($4.04 annualized) from 91 cents ($3.64 annualized). Wabtec’s (on Feb. 6, 2026)board of directorsapproved a dividend hike of 25%, thereby raising its quarterly cash dividend to 31 cents per share ($1.24 annualized) from 25 cents ($1 annualized).

Economic Uncertainty Remains: Tariff tensions have led to escalated trade woes across the globe. These tariff-induced economic uncertainties do not bode well for industry participants. With inflation remaining a concern, risks associated with an economic slowdown and geopolitical tensions dampen the prospects of stocks belonging to this industrial cohort. Sluggish economic growth and inflationary woes are likely to make markets more volatile in the coming days. Ongoing economic uncertainty does not bode well for industry players.

Supply-Chain Disruptions & Weak Freight Rates:Although economic activities picked up from the pandemic gloom, lingering supply-chain disruptions continue to dent stocks in the industry. Increased operating costs are also limiting bottom-line growth. Due to supply-chain troubles, costs will likely continue to be steep going forward. Below-par freight rates are also hurting the industry’s prospects. Highlighting the weak freight demand, the Cass Freight Shipments Index declined 4.8% year over year in July 2026, 4.1% year over year in June 2026, 1.2% year over year in May 2026, 4.4% year over year in April 2026, 4.5% year over year in March 2026, 7.2% year over year in February 2026 and 7.1% in January 2026. This measure has also deteriorated year over year in each of the past 12 months in 2025, which confirms the overall declining trend.

Zacks Industry Rank Indicates Gloomy Prospects The Zacks Transportation - Equipment and Leasing industry, housed within the broader Zacks Transportation sector, currently carries a Zacks Industry Rank #170. This rank places it in the bottom 31% of more than 250 Zacks industries.

The group’s Zacks Industry Rank, which is basically the average of the Zacks Rank of all the member stocks, indicates dull near-term prospects. Our research shows that the top 50% of the Zacks-ranked industries outperform the bottom 50% by a factor of more than 2 to 1.

Before we present a few stocks that investors can consider, given their growth prospects, let’s take a look at the industry’s recent stock market performance and current valuation.

Industry Lags S&P 500 & Sector The Zacks Transportation - Equipment and Leasing industry has underperformed the Zacks S&P 500 Composite as well as the broader sector over the past year.

Over this period, the industry has gained 19.2% compared with the S&P 500 Index’s northward movement of 20.1%. The broader sector has gained 21.3%.

One-Year Price Performance

Industry's Current Valuation On the basis of the forward 12-month price-to-earnings (P/E- F12M), a commonly used multiple for valuing equipment and leasing stocks, the industry is currently trading at 15.78X, compared with the S&P 500’s 20.34X. It is above the sector’s P/E (F12) ratio of 14.86X.

Over the past five years, the industry has traded as high as 16.15X, and as low as 8.09X, with a median of 11.87X, as the chart below shows.

P/E Ratio (Forward 12-Month)

3 Transport Equipment Leasing Stocks to Watch Now We are presenting three stocks that are well-positioned to grow in the near term.

AerCap: Headquartered in Dublin, Ireland, AerCap Holdings N.V. engages in the lease, financing, sale and management of commercial flight equipment in the United States, China and internationally. AerCap serves nearly 300 customers around the globe with comprehensive fleet solutions. The company’s shareholder-friendly initiatives in the form of dividend payments and share repurchases should boost investor confidence and benefit the bottom line.

AerCap has an impressive earnings surprise history. The company's earnings outpaced the Zacks Consensus Estimate in each of the trailing four quarters, delivering an average surprise of 39.31%. The Zacks Consensus Estimate for AerCap’s 2026 earnings has been revised 12.60% upward over the past 60 days. AER has an expected earnings growth rate of 23.29% for 2026. AER currently sports a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here. 

Price and Consensus: AER

Wabtec: This Pittsburgh, PA-based company offers technology-based locomotives, equipment, systems and services for the freight rail and passenger transit industries worldwide. Wabtec’s focus on new technologies to improve safety and reliability, together with its restructuring actions and cost-cutting initiatives, looks impressive. Its strong free cash flow-generating ability helps in consistently rewarding its shareholders through dividend payouts and share buybacks. We believe such shareholder-friendly initiatives should boost investor confidence and positively impact the company’s bottom line.

WAB has an impressive earnings surprise history. Wabtec's earnings outpaced the Zacks Consensus Estimate in each of the trailing four quarters, delivering an average surprise of 4.18%. The Zacks Consensus Estimate for WAB’s 2026 earnings has been revised 2.36% upward over the past 60 days. WAB has an expected earnings growth rate of 21.07% for 2026. Wabtec carries a Zacks Rank #3 (Hold) at present.

Price and Consensus: WAB

R: Headquartered in Miami, Ryder operates as a logistics and transportation company worldwide. Ryder is being well-served by its focus on contractual growth and operational discipline. Upbeat used vehicle sales, particularly in its fleet management segment, along with stable pricing and improved contractual sales activity, bode well. Initiatives to reward its shareholders through dividends and buybacks are praiseworthy as well. It has been making uninterrupted dividend payments for more than 49 years. Ryder's cost-cutting initiatives in response to the weak freight market conditions are also commendable.

Ryder has a solid earnings surprise history. The company's earnings outpaced the Zacks Consensus Estimate in three of the trailing four quarters (missed the mark in the remaining quarter), delivering an average surprise of 2.53%. The Zacks Consensus Estimate for Ryder’s 2026 earnings has been revised 0.5% downward over the past 60 days. R has an expected earnings growth rate of 14.09% for 2026. Ryder presently carries a Zacks Rank #3.

Price and Consensus: R

Investors seek growth stocks to capitalize on above-average growth in financials that help these securities grab the market's attention and produce exceptional returns. However, it isn't easy to find a great growth stock.

By their very nature, these stocks carry above-average risk and volatility. Moreover, if a company's growth story is over or nearing its end, betting on it could lead to significant loss.

However, the Zacks Growth Style Score (part of the Zacks Style Scores system), which looks beyond the traditional growth attributes to analyze a company's real growth prospects, makes it pretty easy to find cutting-edge growth stocks.

Westinghouse Air Brake Technologies (WAB - Free Report) is one such stock that our proprietary system currently recommends. The company not only has a favorable Growth Score, but also carries a top Zacks Rank.

Research shows that stocks carrying the best growth features consistently beat the market. And returns are even better for stocks that possess the combination of a Growth Score of A or B and a Zacks Rank #1 (Strong Buy) or 2 (Buy).

Here are three of the most important factors that make the stock of this maker of parts for locomotives, subways and buses a great growth pick right now.

Earnings GrowthEarnings growth is arguably the most important factor, as stocks exhibiting exceptionally surging profit levels tend to attract the attention of most investors. For growth investors, double-digit earnings growth is highly preferable, as it is often perceived as an indication of strong prospects (and stock price gains) for the company under consideration.

While the historical EPS growth rate for Wabtec is 21.3%, investors should actually focus on the projected growth. The company's EPS is expected to grow 21% this year, crushing the industry average, which calls for EPS growth of 2.5%.

Impressive Asset Utilization RatioAsset utilization ratio -- also known as sales-to-total-assets (S/TA) ratio -- is often overlooked by investors, but it is an important indicator in growth investing. This metric shows how efficiently a firm is utilizing its assets to generate sales.

Right now, Wabtec has an S/TA ratio of 0.53, which means that the company gets $0.53 in sales for each dollar in assets. Comparing this to the industry average of 0.44, it can be said that the company is more efficient.

In addition to efficiency in generating sales, sales growth plays an important role. And Wabtec is well positioned from a sales growth perspective too. The company's sales are expected to grow 11.9% this year versus the industry average of 0%.

Promising Earnings Estimate RevisionsBeyond the metrics outlined above, investors should consider the trend in earnings estimate revisions. A positive trend is a plus here. Empirical research shows that there is a strong correlation between trends in earnings estimate revisions and near-term stock price movements.

There have been upward revisions in current-year earnings estimates for Wabtec. The Zacks Consensus Estimate for the current year has surged 2.3% over the past month.

Bottom LineWabtec has not only earned a Growth Score of B based on a number of factors, including the ones discussed above, but it also carries a Zacks Rank #2 because of the positive earnings estimate revisions.

You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here.

This combination indicates that Wabtec is a potential outperformer and a solid choice for growth investors.

Vertiv Stock Surges on Strategic CFO Hire and AI MomentumWabtec NYSE: WAB reported stronger-than-expected second-quarter 2026 results and raised its full-year outlook, citing broad revenue growth, margin expansion, a large multiyear backlog and continued demand across freight, transit, digital and international markets.

Chairman and CEO Rafael Santana said the company delivered a “strong H1 of the year” despite tariff headwinds, unfavorable business mix and difficult year-over-year comparisons. He said Wabtec’s execution helped drive “robust growth, expanded margins, and delivered double-digit earnings per share growth.”

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3 transportation stocks gearing up for a new rallyFor the second quarter, Wabtec reported sales of $3.18 billion, up 17.5% from the prior-year period. Adjusted earnings per diluted share rose 21.6% to $2.76, while GAAP earnings per diluted share increased 18.9% to $2.33. Cash flow from operations was $441 million for the quarter.

“Overall, the quarter reflects the strength of our execution, the resilience of our business, and solid momentum as we move through the year,” EVP and CFO John Olin said.

Backlog and Orders Remain Central to Outlook Markets Are Loving These Stocks 'Firing On All Cylinders'Santana highlighted backlog as a key strength. Wabtec’s 12-month backlog increased 11% from the prior year, while its multiyear backlog exceeded $30 billion, up 42%. In the Freight segment, 12-month backlog was $6.64 billion, up 10.2%, and multiyear backlog reached $25.33 billion, up 47.8%. In Transit, 12-month backlog was $2.5 billion, up 14.5%, while multiyear backlog increased 19.4%.

The company also cited several major business wins during the quarter. Santana said Wabtec secured a billion-dollar order from an Australian customer spanning locomotives, services, components and digital solutions. The company also signed a $184 million Positive Train Control order with Vale in Brazil, received a $55 million platform door order for the Grand Paris Express project and secured a $52 million APAC mining order for drive systems for 240-ton mining trucks.

During the question-and-answer session, Santana said the Australian order had entered backlog and that Wabtec continues to see significant international opportunities in regions including those referenced by analysts such as Australia, East Asia, Uzbekistan, Mongolia, Pakistan, Brazil and parts of Africa. He said “more than a couple of significant deals” could materialize in the second half.

Freight and Transit Both Post Double-Digit Sales Growth Freight segment sales rose 16.9% in the quarter. GAAP segment operating income was $504 million, producing an operating margin of 22.5%, up 0.9 percentage points from a year earlier. Adjusted operating income in Freight increased 20.6% to $579 million, and adjusted operating margin improved 0.8 percentage points to 25.8%.

Olin said the Freight improvement was driven by higher gross margin, contributions from acquisitions including Inspection Technologies and Frauscher, and continued productivity and efficiency efforts.

Transit segment sales increased 18.9% to $936 million, or 17.7% excluding foreign currency. GAAP operating income was $146 million. Adjusted segment operating income was $166 million, with adjusted operating margin rising 2.5 percentage points to 17.7%. Olin said underlying business momentum and the Dellner acquisition contributed to margin expansion.

Product line performance was mixed but broadly positive. Equipment sales rose 35% on higher locomotive deliveries and increased mining sales. Digital intelligence sales increased 88.5%, driven by the Inspection Technologies and Frauscher acquisitions. Transit sales benefited from Dellner and growth across products and services. Component sales declined 0.7%, reflecting lower North American railcar builds and portfolio optimization actions, partly offset by industrial product growth.

Margins Improve Despite Tariffs and Mix Pressure Wabtec reported GAAP operating income of $600 million, up 27.1% from the prior year. GAAP operating margin was 18.9%, up 1.5 percentage points. Adjusted operating margin increased 0.8 percentage points to 21.9%.

Olin said margin improvement reflected contractual price escalation, productivity gains and integration savings, partially offset by rising manufacturing costs, higher year-over-year tariffs and unfavorable mix. He said the company continues to benefit from Integration 3.0, its productivity and simplification program.

Olin told analysts that Wabtec expects most of its full-year margin expansion to occur in the second half, particularly in the fourth quarter. He attributed that outlook to moderating year-over-year tariff headwinds, productivity momentum from Integration 3.0 and portfolio optimization, and comparisons against prior-year items that are not expected to repeat.

Asked whether tariff mitigation actions could become permanent, Santana said some supply chain changes already had structural value, while others depend on greater stability in tariff rates. “Yes, where we can, we’ve moved products from higher tariff areas to lower tariff in the U.S.,” he said.

Guidance Raised for 2026 Wabtec raised its full-year 2026 guidance following the stronger second-quarter results. Santana said the company now expects revenue of approximately $12.5 billion at the midpoint, representing growth of 11.5% from last year and an increase of one percentage point from prior guidance. The company also raised adjusted EPS guidance to a range of $10.60 to $10.90, up 20% at the midpoint.

Olin said the revenue guidance increase was largely tied to stronger flow business, which accounts for about 30% of Wabtec’s revenue, while the remaining 70% is supported by longer-term agreements. He said North American carloads were up nearly 3% in the first half and 4% in the second quarter, helping drive demand tied to locomotive operations and aftermarket activity.

Management said it expects year-over-year revenue growth to moderate in the second half as Wabtec laps the inclusion of Inspection Technologies in prior-year results. Olin said revenue growth is expected to be slightly higher in the third quarter than in the fourth, while margin growth is expected to accelerate meaningfully in the fourth quarter.

Management Cites International Demand, Digital and Modernization Opportunities Santana said freight market indicators remain mixed, but international opportunities are strong as infrastructure expansion and upgrade projects continue to support the company’s order pipeline. In North America, he said industry active locomotive fleet levels increased from the prior-year second quarter, while the railcar build outlook for 2026 is now approximately 25,000 cars, down 21% from 2025.

On digital offerings, Santana said Wabtec is seeing deeper international penetration, pointing to Positive Train Control, automation and related technologies as increasingly important to global rail customers.

The company also discussed its EVO Advantage modernization program. Santana said Wabtec received its first North American order for the program in the second quarter and views modernization as a way to refresh its installed base while delivering fuel efficiency benefits to customers.

Wabtec ended the quarter with more than $2 billion in liquidity and a net debt leverage ratio of 2.2 times. Olin said the ratio remained within the company’s stated range of 2.0 to 2.5 times even after funding the roughly $1 billion Dellner acquisition in the first quarter and repurchasing $457 million of shares in the first half. During the second quarter, Wabtec repurchased $215 million of shares and paid $53 million in dividends.

About Wabtec (NYSE:WAB)Wabtec Corporation (Westinghouse Air Brake Technologies Corporation) is a global provider of equipment, systems and services for the rail industry. The company supplies products and solutions to freight railroads, transit agencies and other industrial operators, focusing on technologies that improve the performance, safety and efficiency of locomotives and rail networks. Wabtec's business spans new equipment manufacturing, aftermarket parts and services, and digital and control systems for rail operations.

Product and service offerings include locomotive systems and components, braking and air systems, propulsion and traction equipment, signaling and control technologies, and a range of aftermarket services such as maintenance, remanufacturing, parts distribution and fleet modernization.

This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest reporting and unbiased coverage. Please send any questions or comments about this story to [email protected].

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For the quarter ended June 2026, Westinghouse Air Brake Technologies (WAB - Free Report) reported revenue of $3.18 billion, up 17.5% over the same period last year. EPS came in at $2.76, compared to $2.27 in the year-ago quarter.

The reported revenue compares to the Zacks Consensus Estimate of $3.08 billion, representing a surprise of +3.2%. The company delivered an EPS surprise of +4.94%, with the consensus EPS estimate being $2.63.

While investors closely watch year-over-year changes in headline numbers -- revenue and earnings -- and how they compare to Wall Street expectations to determine their next course of action, some key metrics always provide a better insight into a company's underlying performance.

Since these metrics play a crucial role in driving the top- and bottom-line numbers, comparing them with the year-ago numbers and what analysts estimated about them helps investors better project a stock's price performance.

Here is how Wabtec performed in the just reported quarter in terms of the metrics most widely monitored and projected by Wall Street analysts:

Sales to external customers- Freight Group- Equipment: $737 million versus the two-analyst average estimate of $731.64 million.Sales to external customers- Freight Group- Components: $398 million versus the two-analyst average estimate of $382.96 million.Sales to external customers- Transit Segment: $936 million versus $885.7 million estimated by two analysts on average. Compared to the year-ago quarter, this number represents a +18.9% change.Sales to external customers- Freight Group- Services: $748 million compared to the $689.24 million average estimate based on two analysts.Sales to external customers- Freight Segment: $2.24 billion versus the two-analyst average estimate of $2.19 billion. The reported number represents a year-over-year change of +16.9%.Sales to external customers- Freight Group- Digital Electronics: $360 million compared to the $393.57 million average estimate based on two analysts.Income (loss) from operations- Freight Segment: $504 million versus $528.26 million estimated by two analysts on average.Adjusted Income (loss) from operations- Transit Segment: $166 million versus the two-analyst average estimate of $145.19 million.Adjusted Income (loss) from operations- Freight Segment: $579 million versus the two-analyst average estimate of $566.26 million.Income (loss) from operations- Transit Segment: $146 million compared to the $139.69 million average estimate based on two analysts.View all Key Company Metrics for Wabtec here>>>

Shares of Wabtec have returned -2.5% over the past month versus the Zacks S&P 500 composite's +0.3% change. The stock currently has a Zacks Rank #2 (Buy), indicating that it could outperform the broader market in the near term.

Wall Street analysts forecast that Westinghouse Air Brake Technologies (WAB - Free Report) will report quarterly earnings of $2.63 per share in its upcoming release, pointing to a year-over-year increase of 15.9%. It is anticipated that revenues will amount to $3.08 billion, exhibiting an increase of 13.8% compared to the year-ago quarter.

Over the past 30 days, the consensus EPS estimate for the quarter has been adjusted upward by 0.7% to its current level. This demonstrates the covering analysts' collective reassessment of their initial projections during this period.

Prior to a company's earnings announcement, it is crucial to consider revisions to earnings estimates. This serves as a significant indicator for predicting potential investor actions regarding the stock. Empirical research has consistently demonstrated a robust correlation between trends in earnings estimate revision and the short-term price performance of a stock.

While investors typically rely on consensus earnings and revenue estimates to gauge how the business may have fared during the quarter, examining analysts' projections for some of the company's key metrics often helps gain a deeper insight.

Bearing this in mind, let's now explore the average estimates of specific Wabtec metrics that are commonly monitored and projected by Wall Street analysts.

Analysts predict that the 'Sales to external customers- Transit Segment' will reach $885.70 million. The estimate indicates a change of +12.5% from the prior-year quarter.

Analysts' assessment points toward 'Sales to external customers- Freight Segment' reaching $2.19 billion. The estimate indicates a change of +14.4% from the prior-year quarter.

The collective assessment of analysts points to an estimated 'Income (loss) from operations- Freight Segment' of $528.26 million. The estimate is in contrast to the year-ago figure of $415.00 million.

It is projected by analysts that the 'Adjusted Income (loss) from operations- Transit Segment' will reach $145.19 million. The estimate is in contrast to the year-ago figure of $120.00 million.

According to the collective judgment of analysts, 'Adjusted Income (loss) from operations- Freight Segment' should come in at $566.26 million. Compared to the current estimate, the company reported $480.00 million in the same quarter of the previous year.

Analysts expect 'Income (loss) from operations- Transit Segment' to come in at $139.69 million. The estimate is in contrast to the year-ago figure of $109.00 million.

View all Key Company Metrics for Wabtec here>>>

Shares of Wabtec have demonstrated returns of -4.3% over the past month compared to the Zacks S&P 500 composite's +0.6% change. With a Zacks Rank #2 (Buy), WAB is expected to beat the overall market performance in the near future. You can see the complete list of today's Zacks Rank #1 (Strong Buy) stocks here >>>> .

Key Takeaways Wabtec will report Q2 2026 results on July 22, with earnings and sales seen rising year over year. Freight and Transit revenues are projected to grow 4.9% and 6.65%, respectively, from a year earlier. Higher costs may pressure results, while robust services, aftermarket and OEM demand may support sales. Westinghouse Air Brake Technologies (WAB - Free Report) , operating as Wabtec Corporation, is scheduled to report second-quarter 2026results on July 22, before market open.

The Zacks Consensus Estimate for WAB’s second-quarter 2026 earnings has remained flat at $2.63 per share over the past 60 days. The consensus mark for earnings implies a 15.9% upside from the year-ago actual. The consensus estimate for sales (currently pegged at $3.08 billion) suggests a 13.8% uptick from the year-ago actual.

Wabtec has an encouraging earnings surprise history. The company’s earnings have outpaced the Zacks Consensus Estimate in each of the trailing four quarters, delivering an average beat of 3.97%.

Factors Likely to Have Influenced WAB's Q2 PerformanceWe expect Wabtec's performance in the to-be-reported quarter to have been adversely affected by higher operating expenses. Persistent geopolitical tensions in the Middle East and ongoing supply-chain disruptions are also likely to have pressured the company's bottom line.

Conversely, WAB's top-line performance in the to-be-reported quarter is expected to have benefited from stronger demand for services and components, supported by solid sales across both the aftermarket and original equipment manufacturing (OEM) channels.

The Zacks Consensus Estimate for Freight revenues is pegged at $2.19 billion, implying 4.9% growth from the prior-year reported figure. The consensus mark for Transit revenues is pinned at $839.37 million, indicating 6.65% growth from the prior-year reported figure.

What Our Model Says About WABOur proven model does not conclusively predict an earnings beat for Wabtec this time. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the odds of an earnings beat, which is not the case here. You can uncover the best stocks to buy or sell before they are reported with our Earnings ESP Filter.

Wabtec has an Earnings ESP of 0.00% and a Zacks Rank #2 at present. You can see the complete list of today’s Zacks #1 Rank stocks here.

Highlights of WAB’s Q1 ResultsWAB reported encouraging first-quarter 2026 results, wherein both earnings and revenues surpassed the Zacks Consensus Estimate and increased year over year.

Quarterly earnings per share of $2.71 beat the Zacks Consensus Estimate of $2.55 and improved 18.9% year over year, driven by higher sales and non-operational benefits primarily related to currency fluctuation and the timing of tax expense. Revenues of $2.95 billion outpaced the Zacks Consensus Estimate of $2.93 billion and grew 13% year over year.

Stocks to ConsiderHere are a few stocks from the broader Zacks Transportation sector that investors may consider, as our model shows that these have the right combination of elements to beat on earnings this reporting cycle.

Expeditors International of Washington (EXPD - Free Report)  has an Earnings ESP of +2.00% and a Zacks Rank #2 at present.

EXPD is set to report second-quarter 2026 earnings on Aug. 4. The Zacks Consensus Estimate for Expeditors’ second-quarter 2026 earnings has been revised 2.52% upward over the past 60 days. EXPD’s earnings beat the Zacks Consensus Estimate in each of the preceding four quarters, delivering an average beat of 13.96%.

Schneider National (SNDR - Free Report) has an Earnings ESP of +3.76% and a Zacks Rank #2 at present. SNDR is scheduled to report second-quarter 2026 earnings on July 30.

The Zacks Consensus Estimate for second-quarter 2026 earnings has remained flat at 22 cents over the past 60 days. SNDR’s earnings beat the Zacks Consensus Estimate in one of the preceding four quarters (missing the mark twice and met the mark once in the remaining three quarters). The average miss is 17.97%.

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PITTSBURGH--(BUSINESS WIRE)--Wabtec Corporation (NYSE: WAB) announced it will report 2026 second quarter results before the U.S. financial markets open on July 22, 2026. The company will conduct a conference call to discuss those results with analysts and investors at 8:30 a.m. ET the same day. To listen to the call via webcast, visit Wabtec’s website at www.WabtecCorp.com and click on “Events & Presentations” in the “Investor Relations” section. An audio replay of the call will be available by calling 1-855-669-9658 or 1-412-317-0088 (access code: 2758919).

About Wabtec Corporation

Wabtec Corporation is revolutionizing the way the world moves for future generations. The Company is a leading global provider of equipment, systems, digital solutions and value-added services for the freight and transit rail industries, as well as the mining, marine and industrial markets. Wabtec has been a leader in the rail industry for over 155 years and has a vision to achieve a sustainable rail system in the U.S. and worldwide. Visit Wabtec’s website at www.wabteccorp.com.

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Headwinds, including inflation, tariff-related tensions, and lingering supply-chain disruptions, hurt the Zacks Transportation - Equipment and Leasing industry. WAB, AER and AL are likely to stand out.

PITTSBURGH--(BUSINESS WIRE)-- #WeAreWabtec--Wabtec Corporation (NYSE: WAB) announced it will report 2026 first quarter results before the U.S. financial markets open on April 22, 2026. The company will conduct a conference call to discuss those results with analysts and investors at 8:30 a.m. ET the same day. To listen to the call via webcast, visit Wabtec's website at www.WabtecCorp.com and click on “Events & Presentations” in the “Investor Relations” section. An audio replay of the call will be availabl.

Beyond analysts' top-and-bottom-line estimates for Wabtec (WAB), evaluate projections for some of its key metrics to gain a better insight into how the business might have performed for the quarter ended March 2026.

Wabtec (WAB) is well positioned to outperform the market, as it exhibits above-average growth in financials.

While the top- and bottom-line numbers for Wabtec (WAB) give a sense of how the business performed in the quarter ended March 2026, it could be worth looking at how some of its key metrics compare to Wall Street estimates and year-ago values.

ADM, XOM, CVX, WAB and CMI have surged 20%+ in 2026, backed by strong earnings outlooks and tailwinds that suggest further upside ahead.

Wabtec (WAB) reported earnings 30 days ago. What's next for the stock?

Headwinds, including inflation, tariff-related tensions, and lingering supply-chain disruptions, hurt the Zacks Transportation - Equipment and Leasing industry. WAB, AER and R are likely to stand out.